At CPA FERRERE we advise our clients on determining the reasonable value of different sized companies in different areas of activity

Determination of a company’s value is a process that includes analysis of the firm’s economic and financial situation, and the technical estimate of the business’ reasonable value range. It requires experience and knowledge and can include determination of the reasonable value of the assets or the net worth of the company as a whole, of a segment of the company, or of an intangible asset.

Based on our experience in this type of work and our access to global knowledge bases, CPA FERRERE’s methodological approach includes the following points:

• Economic and financial analysis of the company or business.
• Analysis of the evolution of its sector of activity.
• Analysis of the assumptions or hypotheses used in making projections and evaluation of their internal coherence.
• Identification of key factors that can materially affect the business going forward and verification that they have been duly considered.
• Determination of the firm’s estimated value by preparing a financial projections model.
• Estimation of the discount rate at which future funds flows will be updated, based on the company’s sector of activity.
• Comparison of the value obtained with similar companies, contrasting it with the information contained in global knowledge bases.
• Sensibility analysis of financial projections made via application of Montecarlo simulation techniques by use of specific applications that make it possible to introduce risk in the model’s key variables.

Our experience

We have vast experience in determining the reasonable values of companies of diverse sizes and areas of activity. Our multidisciplinary work teams make it possible to analyze each project from different perspectives (legal, tax, financial, economic, strategic, technology and processes), which ensures a reliable valuation process for our clients, minimizing the process risks by application of preventive actions.